Most Americans Forced Into Early Retirement, Study Finds

Millions Leaving Work Earlier Than Planned

A growing number of Americans are being pushed into retirement years before they expected, with illness, job losses and financial pressure forcing many out of the workforce early.

A major new study from the Society of Actuaries Research Institute found that nearly six in ten retirees stopped working sooner than planned — often because circumstances left them with little choice.

The report found 59 percent of retirees exited the workforce earlier than expected, while just 6 percent retired later than planned.

That mirrors findings from the Employee Benefit Research Institute and the Transamerica Center for Retirement Studies, both of which show Americans consistently retiring earlier than they hoped.

Health Problems Biggest Driver

The single biggest reason for early retirement was deteriorating health.

According to the survey, 31 percent of early retirees cited health problems affecting either themselves or a family member as the main reason they stopped working.

Job dissatisfaction came second at 25 percent, followed by job loss at 20 percent and changes in family circumstances at 19 percent.

Only 16 percent said they retired early because they had reached their financial goals ahead of schedule.

For lower-income Americans, the picture was especially bleak.

Among retirees earning less than $35,000 a year, health issues and layoffs were by far the most common triggers for leaving work — factors largely outside their control.

Wealthier Workers Had More Choice

The report found wealthier Americans were far more likely to retire early on their own terms.

Retirees earning over $75,000 were more likely to cite frustration with work or unexpectedly strong savings growth as their reason for stepping away.

Researchers said affluent workers generally had greater flexibility and financial security when deciding when to retire.

Craig Copeland of the Employee Benefit Research Institute said higher-income Americans were “more likely to do it because it’s their choice,” while poorer workers were often pushed out by events beyond their control.

Retirement Reality Far Different From Expectations

The findings highlight a widening gap between retirement dreams and reality.

Most workers still expect to retire around 65 — and many even hope to work into their seventies.

But the average American actually retires at 62.

Despite fears over inadequate savings, most retirees surveyed said they were coping financially better than expected.

Only 19 percent of retirees in the actuarial study said they were financially worse off than anticipated.

Still, experts warn many older Americans are surviving largely through cutbacks, modest savings and reliance on Social Security Administration benefits rather than enjoying the comfortable retirements often promoted by financial planners.

Retirement Savings Gap Still Huge

Federal data shows the typical American household aged between 65 and 74 with retirement savings holds roughly $200,000 — far below the $1 million-plus often recommended by financial advisers.

Researchers say that reality is forcing millions of retirees to drastically adjust their lifestyles once their working years suddenly come to an end.

SOURCE

I got forced into retirement, a year of so before my planned retirement. They fired my butt, and glad they did, as didn't realize I could retire earlier than planned.

THANKS for that, NWA.

Better to do it at a time of your choosing. The dot-com bubble burst. Not a lot of contracts to be had. Had enough money. Retired at 45.

I gave my kids the same advice my father gave me. “Don’t expect anyone to look after you in old age, it’s on you, start saving for retirement with your first paycheck”.

When at age 30 I witnessed a respected 60+ colleague being treated appallingly by managers and buckling under because as he said, “I can’t afford to lose my job”, I immediately doubled up my retirement savings.

People on low incomes obviously don’t have the same opportunity to secure a retirement income, but anyone earning above median income absolutely should be able to secure their retirement.

Too many respond to increases in income with an increase in their conspicuous consumption, seemingly in the belief they can stay on the treadmill.

Edited May 27May 27 by Chomper Higgot

Surprised some posters don't know the difference between lose and loose.

Back on topic,

You can't plan for the future, I tried it and it didn't work.

My house in the country ....... gone.

My extra large pension ......... gone.

All because I was foolish enough to get married in the UK.

I should have just moved to Thailand at age 24 with what I already had and not bothered working at all.

Result would have been same money, but 30 years more fun.

Edited May 27May 27 by BritManToo

5 minutes ago, BritManToo said:

Surprised some posters don't know the difference between lose and loose.

Back on topic,

You can't plan for the future, I tried it and it didn't work.

My house in the country ....... gone.

My extra large pension ......... gone.

All because I was foolish enough to get married in the UK.

I should have just moved to Thailand at age 24 with what I already had and not bothered working at all.

Result would have been same money, but 30 years more fun.

You’ve found your purpose in life as a spell checker.

I would sympathize with you over your loss, but of course there’s two side to every story and anyway, were you never told ‘It’s on you’?!

Edited May 27May 27 by Chomper Higgot

8 minutes ago, BritManToo said:

Surprised some posters don't know the difference between lose and loose.

Maybe he was able to afford to tighten up his job?

9 minutes ago, BritManToo said:

should have just moved to Thailand at age 24 with what I already had and not bothered working at all.

Result would have been same money, but 30 years more fun.

But you would need to work to support yourself

3 minutes ago, Chomper Higgot said:

You’ve found your purpose in life as a spell checker.

The advancement of civilization is dependent on informing each other of what is right and wrong, good and bad, and what is correct and incorrect.

16 minutes ago, Rockyroad said:

But you would need to work to support yourself

No, I had enough money at age 24.

Just now, BritManToo said:

No, I had enough money at age 24.

Bs

Just now, Rockyroad said:

Bs

I had 2 houses (Brighton), 4x 2bed flats (Hove seafront) and 15x bedsits (Worthing), never needed to work one day in my life.

But rather foolishly I believed the propaganda of having to earn my own way in life ...... boy, was that a mistake!

Edited May 27May 27 by BritManToo

4 minutes ago, BritManToo said:

I had 2 houses (Brighton), 4x 2bed flats (Hove seafront) and 15x bedsits (Worthing), never needed to work one day in my life.

But rather foolishly I believed the propaganda of having to earn my own way in life ...... boy, was that a mistake!

The abilities of your benefactors seem not have been inherited.

6 minutes ago, BritManToo said:

I had 2 houses (Brighton), 4x 2bed flats (Hove seafront) and 15x bedsits (Worthing), never needed to work one day in my life.

But rather foolishly I believed the propaganda of having to earn my own way in life ...... boy, was that a mistake!

And you bought this from a few years of work? Sounds bs

19 hours ago, KhunLA said:

I got forced into retirement, a year of so before my planned retirement. They fired my butt, and glad they did, as didn't realize I could retire earlier than planned.

THANKS for that, NWA.

Wow.

We got Ice Cube on the forum.

Good to hear you checked yo self before you wrecked yo self.

43 minutes ago, BritManToo said:

having to earn my own way in life ...... boy, was that a mistake!

But all you do now is ride a bike. Pretty boring life.

3 minutes ago, Rockyroad said:

But all you do now is ride a bike. Pretty boring life.

What do you imagine doing when you're age 70?

Just now, BritManToo said:

What do you imagine doing when you're age 70?

Taking train trips, walking around the towns.

73 here. Able to live in Japan and stay in Thailand up to 179 days a year there. All on my somewhat small Social Security. I am grateful though I am NOT in debt. That helps. I did post a picture of how I do live in Bangkok on a $68 apartment. ( 2000 baht ).

The trick is try not to be in debt at any age, but at least not after 57 years of age, and yes, don't count on anyone and use your wits to survive. Of course, money helps.

1 hour ago, BritManToo said:

My house in the country ....... gone.

My extra large pension ......... gone.

All because I was foolish enough to get married in the UK.

Hard pill.............

many cry in their drink...............

never move on..............

thank goodness for Thailand, gives many of us solace...........

42 minutes ago, BritManToo said:

What do you imagine doing when you're age 70?

Competing in Masters Cycle Races.

3 hours ago, BritManToo said:

3 hours ago, BritManToo said:

Surprised some posters don't know the difference between lose and loose.

Back on topic,

You can't plan for the future, I tried it and it didn't work.

My house in the country ....... gone.

My extra large pension ......... gone.

All because I was foolish enough to get married in the UK.

Well at least you're not bitter and don't constantly post mysogynistic things about western women..........................oh wait!

Edited May 27May 27 by johnnybangkok

Yeah, happened to me a long time ago.

Forced might be slightly too strong a word, but the effect was the same.

My work niche which had been quite lucrative rather quickly dried up to be outsourced to India for 20 percent of the cost. Now or soon AI will be able to replace the Indians. I probably could have found demeaning alternative work for much less pay but it wouldn't have paid enough to even cover basic expenses.

46 minutes ago, Jingthing said:

Yeah, happened to me a long time ago.

Forced might be slightly too strong a word, but the effect was the same.

My work niche which had been quite lucrative rather quickly dried up to be outsourced to India for 20 percent of the cost. Now or soon AI will be able to replace the Indians. I probably could have found demeaning alternative work for much less pay but it wouldn't have paid enough to even cover basic expenses.

AI is coming for lots of people’s jobs.

I’ve a lawyer friend who, as recently as last year was proclaiming AI would never replace lawyers, his employer’s replaced half their legal team, himself included, with AI assistants.

Like many he was living life like work and his salary would always be there.

A tough lesson to learn in middle age.